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| Jul 29, 2010 - 06:39 PM |
Queen City News - Helena's FREE Weekly Newspaper |
Helena, Montana |
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On Feb. 10, 2010, the Queen City News printed a guest opinion entitled, “Group wants candor on NWE power line,” authored by Ms. Sue Pullman. There were a number of errors in it that should be corrected.
When NorthWestern filed the MSTI project application with the State of Montana and BLM, it did so pursuant to the provisions of the Montana Major Facility Siting Act, which requires the applicant to identify a preferred and two alternative routes. The applicant is also expected to identify routes which minimize adverse environmental effects.
To accomplish that goal, NorthWestern selected routes where MSTI could be located alongside existing power lines and other linear features, such as highways and railroads, to the greatest possible degree. If a landscape has already been altered by an existing transmission or transportation corridor, for the most part the environmental effects of development are already accounted for, and the addition of another facility has relatively little environmental effect. That’s why the preferred route for MSTI largely follows the I-90 and I-15 corridors and two existing transmission lines from the Whitehall area through South Butte, to Anaconda, and then south past Dillon to Monida Pass and into Idaho.
Ms. Pullman alleges that the preferred route is an end run around the federal government’s energy corridor selection process completed in 2005 which designated an energy corridor alongside the existing 500-kV Colstrip transmission line that runs through the center of Jefferson County. That is not true. NorthWestern testified in favor of designating federal energy corridors and suggested a number of route alternatives, some of which were accepted by the federal government and others which were not. The federal government corridor process was not exclusive. Nothing prevents transmission companies from requesting additional routes, nor is the state, BLM, or Forest Service prevented from permitting new transmission routes.
Ms. Pullman also suggests the appropriate route for MSTI is through the Elkhorn Mountains in central Jefferson County near the existing Colstrip 500-kV transmission line. While that route may remove the power line from the Pullman’s view, this route will require that additional right of way be acquired thorough currently undisturbed forest. This is due to reliability limitations that limit how close the MSTI line could be placed to the existing Colstrip 500-kV transmission line.
Ms. Pullman also suggested that NorthWestern Energy has used the promise of property tax revenues as “bait” to obtain support from public officials. There is no “bait” involved. There are very real property tax benefits associated with MSTI. Property taxes that will be paid by MSTI are substantial, starting at $18.7 million per year, and perhaps higher, along the preferred route as follows:
County Annual Property Tax
Broadwater $8.4 million
Beaverhead $4.7 million
Deer Lodge $0.6 million
Jefferson $1.6 million
Silver Bow $3.4 million
Total: $18.7 million
The total taxable value of MSTI’s preferred route is a minimum of $34 million, of which $19.6 million is attributable to the transmission line and $14.4 million for the substation near Townsend. Each mile of MSTI has a taxable value of at least $98,100. In contrast, the taxable value of the grazing land crossed by the power line easement is $33.87 per mile. The estimated taxable value of the 121 miles of private land that would be crossed by MSTI is about $4,098, an amount equal to 221 feet of MSTI itself.
In 2004, when planning for MSTI began, there were several coal-fired power plants on the drawing board in Montana. Those projects have gone by the wayside, victims of changing public attitudes and concerns over climate change and greenhouse gas emissions. Since then, interest in renewable energy development, particularly wind generation, has grown substantially. Right now, 35 wind projects totaling more than 2,700 MW of generating capacity have filed applications with NorthWestern seeking transmission service from the company. MSTI is well-positioned to serve the need for transmission capacity to move the energy from these projects to customers.
Finally, Ms. Pullman questions who will pay for the line. The answer is simple – the electric generating companies who sign contracts with NorthWestern to use the line or their customers. MSTI will not be placed into NorthWestern’s rate base. It will not be paid for by NorthWestern’s customers in Montana.
(John Fitzpatrick is executive director of governmental affairs for NorthWestern Energy.)
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The Queen City News is published every Wednesday in Helena, MT, by Mossback Media, LLC.
Contents are copyrighted and cannot be used in any form without prior permission from the QCN.
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